advantages and disadvantages of media conglomeration
Media conglomerates such as Viacom, represents the historical and present ideas of consolidation and convergence. Conglomerates may also conglomerate via greenfield ventures, which is when a company builds a new facility from scratch rather than acquiring an existing one. What are the advantages and drawbacks of, allowing large conglomerates to control the mass media? Since 1950 media conglomerate has become a regular feature of the global economic system. Comment * document.getElementById("comment").setAttribute( "id", "ae2097044bcf4eadb3719e41bcea7d1f" );document.getElementById("i2e65971ac").setAttribute( "id", "comment" ); Copyright 2023 Marketing91 All Rights Reserved, Conglomerate Definition, Benefits and Examples, 22 Best Side Hustle Ideas (Online and Offline), How To Buy Into A Business? Generally, mass media is a print and electronic means of communication that spreads messages to the audiences and carries out information to the people in the society. With the rise of the internet, even those in democracies can be easily exposed to media designed to drive us to hate or believe in lies. All rights reserved. Many conglomerates are thus multinational and multi-industry organizations. Media convergence is a transformative process and has had major effects on people's lives and society as a whole. A conglomerate is a multi-industry company, such as General Electric and NBC Universal, that includes multiple business enterprises operating in distinct industries under the same corporate umbrella. Conglomerates also have access to new markets and technologies. Are you or your spouse an active or retired U.S. military service member?*. The Walt Disney Company, for example, is a media conglomerate that owns and operates businesses in the entertainment, parks, resorts, and consumer products industries. Newspaper firms have started to search for online delivery channels so as to retain the young readers. "Media conglomerates strive for policies that facilitate their control of the markets around the world." From the effects of this merging media, a purely capitalistic society relentlessly forms, diminishing individual rights . One obvious difference is that ownership and control are separated, and the primary objective of those who control these companies is to maximize returns to investors. What are alternative ways the. Another advantage of this is that what works for the people also works for the media. James Gattuso, in the same May 2003 article, offers NBC, MSNBC and msnbc.com as an example of this phenomenon. Most of the media firms have started to implement a 360-degree strategy that integrates content decisions shaped by the potential to generate consumer value and returns through multiple platforms of expression of that content via a number of distribution outlets (Doyle, 2010). A financial adviser who wants to recommend a risk-averse approach will inevitable talk about diversity and a diverse portfolio of investments. The computer technologies which have become part of people's everyday lives are the physical site of media convergence trends. From the in-depth movie analysis, this essay will be able to show that the media is able to influence the people and their stance towards certain topics by applying these media theories: agenda setting through gatekeeping, dramatization, and two-step flow of communication. The former says that, up to a certain point, companies will consistently lower relative costs as they grow, and the latter that advantages can be increasingly gained from complementary services available within a growing entity. In addition, numerous TV and radio programs devote themselves to exploring the world, offering us the chance to discover new things and new ideas, and enlighten ourselves in the process. A conglomerate benefits the subsidiaries and the parent company by reducing business risks, sharing the resources and increasing its market share in several industries. This comes at a drawback. Due to these media conglomerates the theory of media imperialism evolved which states that due to over concentration of mass, A media source which ignores or censors important issues and events severely damages freedom of information. Newspapers such as the NY Times, Denver Post and USA Today maintain websites, as do major magazines such as Time and Newsweek. Conglomerates require less manpower than companies that are not conglomerates. The returns from high performing business units within the conglomerate compensates for the low performing ones. Business is my passion and i have established myself in multiple industries with a focus on sustainable growth. The whole is often worth less than the sum of its parts. Rather, they can tailor programming to serve the needs of different segments of the viewing population. Two final aspects of media convergence are organic convergence and global convergence. is a modern generalized description.(Michael Pertschuck, and Scott Sherman, (1999). This limitation of scope goes hand-in-hand with another benefit: improved quality. They also benefit from synergies between its subsidiaries to gain access to new markets and technologies. Advantages of Media Education: Media educates the mass. Boeing is a multinational conglomerate that has a number of subsidiaries that operate in different markets. Media bias has a very large effect on society and most often in a negative way. The societies rely on mass media for information, entertainments and even communications. Faulty advertisement tactics: Drug and alcohol use appears cool in this medium, which can be harmful to a country's youth. Man on the Moon is a biographical movie with a drama and comedy genre about the late American entertainer, actor, and performance artist named Andy Kaufman. Like any other business, the purpose of the media is to earn profit and the only way they can do so, is by providing the viewers with whatever they want. Only a few companies representing the interests of a minority elite control the public airwaves. In the same way, one advantage of a conglomerate is that it is better equipped to retain a general position and be less affected by adverse fluctuations. There are more than 32,000 broadcast radio and TV stations in the U.S.,* along with hundreds of cable TV and satellite radio stations. Conglomerates are less popular today, but were quite popular in the 1960s and 1970s. 2023 Walden University LLC. Potato chips might be the first product offered by a food conglomerate. It is believed that the government censors as a way to have control not to protect citizens; by knowing more, they have the upper, Before media, politicians and other newsmakers had to rely on word of mouth to communicate the various messages they were espousing. Some of the ways through which companies conglomerate are-. The Pros of Mass Media It Can Keep Us Connected Before mass media, you could live your entire life knowing nothing about the world outside of your village. The demise of mom-and-pop grocery stores at the hands of chain supermarkets serves as an analogue to the likely fate of small media outlets. Conglomerates also have a number of disadvantages. - Definition & Overview, Franchisee in Marketing: Definition & Explanation, Influencer in Marketing: Definition & Overview, Intangibility in Marketing: Definition & Overview, Learned Behavior in Marketing: Definition, Types & Examples, Marketing Orientation: Definition & Examples, Schedule Variance: Definition, Formula & Calculation, Working Scholars Bringing Tuition-Free College to the Community, Speeds up and expands possibilities of media content distribution, Users can access multiple types of media on one device, Democratization of media (anyone can produce media on a social media website), Expands access to information (anyone with an internet connection can listen to open courses from American universities, for example). It is the image that gives us our identity. For example, if Berkshire Hathaway's construction materials business has a good year, the profit might be offset by a bad year in its insurance business. Numerous online universities offer communication degree programs, giving you the flexibility you need to complete your coursework from home and on a schedule that can let you continue working full time. The first part, digitalization, refers to media companies moving to and expanding their media on digital platforms. As a result, the conglomerate may find it difficult to manage all of its subsidiaries effectively. Through television and radio programs, people get to learn about health matters, environmental conservation, and much more. Participating in a number of different enterprises might help a conglomerate firm diversify the risks associated with being in only one market. While diversity still clearly exists, there is the risk that mass media might reduce cultural variety, leaving us with less art and fewer inspirations. As a result, they have transferred a considerable amount of their delivery channels from print to online format. You must have JavaScript enabled to use this form. Economic convergence refers to the economic strategies (digitalization, conglomeration, deregulation) which occur in response to the advent of these new technologies. Within the media industry, more ratings equal a higher profit. Typographic Contrast Overview & Principles | What is Typographic Contrast? Excessive commercialization. According to Figure 1, only newspaper division has kept declining since 2007. The main disadvantages of the conglomerate model are as follows. Thanks to the business communication made possible by mass media, businesses can reach potential consumers faster and easier than ever before. Individuals frequently tuned in to get records of what is happening in the world, getting to know the current trends. Media and governments are able to manipulate the social construct to control and impose political motives on society, bringing out the best and the worst of human nature. Those involved in multimedia studies have been answering this question in different ways for many years. Conglomerates are often large and multinational . This is because conglomerates usually have a number of different subsidiaries that operate in different markets. 1. A conglomerate is a large, diverse company made up of many smaller businesses. Conglomerates are usually formed via acquisitions, in which one company buys a controlling stake in another firm. User-created content has disrupted established practices in media companies and narrowed the gap between professional and amateur media content creation. Due to these media conglomerates the theory of media imperialism evolved which states that due to over concentration of mass, Chris Hedges article, Our Country Is Lost Believing in What It Sees on Screens, and We Are Going to Pay a Nasty Price for It, highlights the negative influence electronic media has on society. Advantages: Due to diversification, conglomerates can reduce their investment risk. Smartphones, tablets, and other smart devices offer a plethora of services that used to only be available through various, unconnected technologies. Some of the advantages are that there is diversification, which can result in the reduction of investment risk. Media convergence has a number of serious effects on society. Diversification results in a reduction of investment risk. Now, we are all connected. Management costs increases due to size of the group Conglomerates have to face many accounting-related problems, for example, consolidation One hundred years ago nobody heard about the news or current events from Facebook or the newest tweet. Investopedia: Conglomerates -- Cash Cows or Corporate Chaos. In essence, owners no longer need to try to appeal to the widest possible audience in a single media format. The argument can be made that, instead of appealing to the lowest common denominator in the public, at least some media should give the more informed and critical segment of the people what it wants (Lazere 305). In 2014, General Electric (GE) and Alstom, a French company that specializes in rail transportation, announced the formation of a joint venture that would combine their rail businesses. The aforementioned two subsidiaries can help conglomerates to gain access to new markets and technologies. Over the years, technologies have been gradually advancing and have played an important role in todays fast growing societies. Diversifying into many industries or product lines may help an organization maintain a sense of equilibrium during these ups and downs. In a May 2003 article appearing on the Heritage Foundation, James Gattuso - a senior research fellow in regulatory policy - reports that the ability to own multiple television stations, for example, allows the owners to provide programming for niche markets on the different stations. Let us know in the comments below. One implication is that media economic research is mostly focused on media conglomerates like Bertelsmann, Disney, News Corporation, Time Warner and Viacom. Moreover, technological convergence has seen the rise of social media journalism. The United States and many other countries see the internet as a threat and a means of control which is why information of the World Wide Web is censored (Bennett). The Uses and Gratification theory by Elihu Katz came into existence when the theorist concocted the idea that individuals utilize the media to their advantage. A media conglomerate or media group is a company that owns large numbers of companies in various mass media such as television, radio, publishing, movies, and the Internet. For instance if a particular movie and television industry were to combine they can put out a television show then sometime down the road the movie side of the corporation can make a movie of the television show. In a sense, there is more honesty in journalism, but media still controls and manipulates peoples opinions, and is therefore just another iteration of World War II propaganda. Professional Codes of Ethics in Public Relations, Advertising vs. Public Relations | Differences, Purpose & Overview, Power of Social Media: Consumerism & Trends | Why Social Media is Attractive. Music, film, television, and publishing industries have suffered economically due to copyright infringement and loss of audience. A conglomerate merger provides the merging companies with the advantage of diversification of business operations and target markets. While some enter the field with a business degree, a communication degree may better prepare you for the full breadth of careers available in mass media. A significant offshoot of social media has been the rise of user-created content. A conglomerate ( / knlm.r.t /) is a multi-industry company - i.e., a combination of multiple business entities operating in entirely different industries under one corporate group, usually involving a parent company and many subsidiaries. One of the most important disadvantages is that they can be very complex and difficult to manage. But is this a good thing? HARM than MERITS. Honeywell is a multinational conglomerate that has a number of subsidiaries that operate in different markets. I would definitely recommend Study.com to my colleagues.